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There are many applications for the direct use of solar thermal energy, space heating and cooling, water heating, crop drying and solar cooking. It is a technology which is well understood and widely used in many countries throughout the world. Most solar thermal technologies have been in existence in one form or another for centuries and have a well-established manufacturing base in most sun-rich developed countries.
The most common use for solar thermal technology is for domestic water heating. Hundreds of thousands of domestic hot water systems are in use throughout the world, especially in areas such as the Mediterranean and Australia where there is high solar insolation (the total energy per unit area received from the sun). As world oil prices vary, it is a technology which is rapidly gaining acceptance as an energy saving measure in both domestic and commercial water heating applications. Presently, domestic water heaters are usually only found amongst wealthier sections of the community in developing countries.